Crypto-related businesses have a hard time getting bank accounts. Now Coinfloor, the U.K.’s longest-running crypto exchange, has teamed up with electronic money institution (EMI) Enumis to deliver bank-like accounts to crypto firms.
The partnership is structured so that Enumis will pay Coinfloor a fee for referring reputable crypto-facing businesses that successfully set up current accounts.
Obi Nwosu, Coinfloor’s CEO told CoinDesk: “Being insiders in the crypto space we are aware of crypto companies operating as good and compliant custodians and so now we will vet and review these and recommend them to Enumis for onboarding. I think ‘brokering’ is technically the wrong word, but we are working in partnership with Enumis and introducing clients to the offering.”
Coinfloor also hopes that the access to fiat accounts will draw more startups to use the exchange. The company, founded in 2013, currently has 50,000 customers, aims to become the premier fiat bridge for the UK.
Nwosu remarked: “Obviously we think it will bring people to the exchange and we tend to be the best price anyway,” and he added, “But this also about helping firms who are doing things the right way to succeed: something we are doing even if they are ostensibly competitors. We would argue that if we are all succeeding it’s beneficial to everyone.”
Enumis isn’t a bank, although it offers many similar services. Founded in 2010, it is authorized as an EMI by the UK’s Financial Conduct Authority, and also holds a consumer credit licence. Importantly it is wired into payment networks such as Mastercard, the UK’s Faster Payments Service, CHAPs and BACs. Through its partnership with Coinfloor, Enumis is offering current accounts with online banking and API capabilities, plus a debit card that gives a 0.2% rebate on usage at Coinfloor.
Ali Latif, CEO and founder of Enumis said: “I have to be careful with my words because we are obviously not a bank. We issue electronic money, but from the perspective of someone using the facilities, you are effectively getting the same sort of functionality.”